SK Hynix saw its operating profits fall 89% from a year earlier to KRW638 billion (US$540.8 million) in the second quarter of 2019, when consolidated revenues slid 38% on year to KRW6.45 trillion.

SK Hynix' revenues and operating profits for the second quarter also represented sequential decreases of 5% and 53%, respectively. The memory chipmaker attributed the negative performance to "steeper-than-expected" price declines and slow demand recovery.

SK Hynix said its DRAM bit shipments increased 13% sequentially in the second quarter, but ASPs fell 24% on quarter. Meanwhile, NAND flash bit shipments surged 40% sequentially during the quarter, when the memory ASPs dropped by 25%.

In addition, SK Hynix disclosed plans to cut its DRAM wafer output by converting part of production lines at its M10 fab in Icheon to the production of CMOS image sensors (CIS) starting the second half of 2019.

SK Hynix will reduce further its total NAND flash wafer production this year, the company continued. SK Hynix previously estimated a more than 10% cut in its total NAND flash output compared to 2018, but has revised the estimate to a larger reduction of over 15%.

SK Hynix added it continues to review and assess when additional cleanroom facilities at its M15 fab in Cheongju and equipment at its M16 fab in Icheon can be installed. Meanwhile, SK hynix will continue focusing on process technology migrations, and sales of high-density and high-value-added products.

SK Hynix intends to increase its 1Xnm and 1Ynm DRAM output to 80% as a proportion of total wafer starts by the end of 2019, and will start selling 1Ynm computing products in the second half of this year.

For NAND flash, SK Hynix will focus on ramping up its 72-layer 3D NAND chip output and scaling up its 96-layer 4D NAND chip output for high-end smartphones and SSDs starting the second half of 2019. The company is also gearing up for mass production of 128-layer 1Tb TLC 4D NAND flash products.

By: DocMemory
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